Calculator · Open source
RRSP vs TFSA Calculator
Which account is better for you? Compare after-tax outcomes based on your income now, expected retirement income, and time horizon.
Methodology
Public formulas, updated regularly. Built for Canadians, by Canadians.
$85,000
$50,000
$10,000
25 yr
6.0%
After 25 years
RRSP is better for you
Advantage: $277,580
Because your tax rate is higher now than in retirement — RRSP deduction is worth more
RRSP
Annual Tax Refund$3,389
Balance at Retirement$581,564
Tax on Withdrawal-$116,604
Refund Reinvested (TFSA)+$197,092
Total After-Tax Value$662,052
TFSA
After-Tax Contribution$6,611/yr
Balance at Retirement$384,472
Tax on Withdrawal$0
Total After-Tax Value$384,472
The Key Factor: Tax Rate Now vs Retirement
Current Marginal Rate
33.9%
Retirement Marginal Rate
20.1%
Rate Change
-13.8%
Rule of thumb: RRSP wins when your current rate is higher than your retirement rate. TFSA wins when they're equal or your retirement rate is higher.